Summary

• U.S. taxable investment-grade bonds posted a roughly break-even result in the first quarter, as measured by the Bloomberg U.S. Aggregate Bond Index.
• February brought a catalyst in the form of U.S. inflation and employment data. Headline inflation for January came in at 2.4%, the lowest reading since May 2025, while the jobs report showed solid January hiring.
• At the sector level, U.S. Treasuries (-0.04%) outpaced more credit-sensitive U.S. investment-grade corporate bonds (-0.54%).

Investment Approach

• Fidelity® Short-Term Bond Fund (FSHBX)is a diversified, short-term bond strategy that seeks a high level of current income, consistent with preservation of capital.
• Benchmarked against the Bloomberg U.S. 1-3 Year Government/Credit Bond Index, the fund

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